Traders in Pakistan are eager to seize the opportunities offered by easier links between the estranged neighbours, which have fought three wars since independence in 1947.
The improved relations between the nuclear-armed rivals stem from Pakistan’s decision to grant India “Most Favoured Nation (MFN)” status by the year end, meaning Indian exports will be treated the same as those from other nations. Indian commerce secretary Rahul Khullar said that Pakistan’s decision to grant India MFN status by the end of the year was “the game-changer.”
MFN status will mean India can export 6,800 items to Pakistan, up from around 2,000 at present, and the countries aim to boost bilateral trade to $6 billion within three years.
India now also says it is ready to unban investments from Pakistan and the countries are planning to allow multiple-entry business visas to spur exchanges, a key demand by business executives.
The warming commercial ties underline the new relevance of the private sector in the peace process, with prospects still low for any rapid settlement of the core Kashmir issue.
Indian and Pakistani officials have been looking at the so-called “China option” as a model, with deepening economic engagement seen by experts as crucial to establishing lasting peace in the troubled region.
“There is no other option but economic interdependency between India and Pakistan which will lead on to other partnerships,” Indian Commerce Minister Anand Sharma said at the Pakistani trade fair in Delhi. “We have to recognise our true trade potential and leave our children with a legacy that ensures prosperity, harmony and peace” he added.
Some Pakistani businesses have protested against the trade opening, fearing they may be swamped by cheaper Indian goods, especially in drugs, auto parts and consumer goods. However, others eye the possibilities India’s market of 1.2 billion people offers.
Indian businessmen are equally enthusiastic, saying there is an opportunity for trade in areas from agriculture, information technology, pharmaceuticals, engineering to chemicals.
Official bilateral trade figures between India and Pakistan is just $2.7 billion and heavily tilted in New Delhi’s favour, but Indian business chamber Assocham estimates up to $10 billion worth of goods are routed illicitly through Afghanistan or shipped from Singapore and the Gulf.
Published in The Express Tribune, May 3rd, 2012.
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they all say they want peace and once they have maintained that PR machine saying peace then they will do whatever they want. India very well knows Pakistan has a very strategic location close to all these other countries which are opening up for business. Indian goods are not that good quality wise, they just want to dump their crap on Pakistan. It is a shame because some high ranking official in Pakistan will be bribed/given money which will be stored offshore like in Switzerland/London and the average Pakistani will be enticed by this crap products. Also Indians are a lot like Pakistanis in that when it comes to paying in business they will NOT pay. Look at the foreigners who won contracts in the Delhi Commonwealth Games - they were not paid. Also if you invest in India it is not easy to get your money out. Iran sells oil to India and in return Indians don't give cash but barter it off with their overpriced cheap spices and other things at overpriced under quality prices.